KEY ISSUES

The auto industry is challenged with meeting numerous government regulations and addressing societal concerns by both improving current technology and creating new solutions.  These new solutions must be developed at a cost that meets consumer, shareholder, and societal needs.

We recognize the potential global growth opportunity in our business and understand that economic growth must be balanced with environmental performance and societal well being.  Providing more of the world’s population with access to mobility options will serve to improve lives, but with this growth come challenges.  These challenges were identified in the World Business Council for Sustainable Development's (WBCSD) Sustainable Mobility project’s final report, Mobility 2030.  The report is available on the WBCSD web site www.wbcsd.org.  

These challenges cannot be adequately addressed by one party.  Strategic partnerships among business, government, and non-governmental sectors are essential to address challenges that we face collectively.  In this section we discuss how GM is moving forward with our stakeholders to develop solutions that work for our business, our shareholders, our stakeholders, our employees, and the communities where we operate.

The key product and facility related corporate responsibility issues: sustainable mobility, conventional air emissions, greenhouse gas emissions, and road safety are discussed in the following pages of this web-based report.

Global Climate

GM is concerned about the potential impact of its business, including its processes and its products, on society and the environment.  We are also concerned about the concentration of greenhouse gases in the atmosphere and we believe there is a constructive way for all stakeholders to move forward together on this issue.

The basic challenge is to meet the world’s growing demands for affordable transportation products necessary to sustain economic growth, while also addressing long-term concerns about the environment.  GM believes the most effective way to improve energy efficiency and reduce greenhouse gas emissions is the voluntary development and global implementation of cost-effective energy technologies in all sectors.

GM is both reducing and reporting its greenhouse gas footprint through its globally integrated energy and carbon management strategy – a strategy that is measurable and verifiable.

GM’s implementation plan to address this challenge reflects numerous voluntary greenhouse gas-management initiatives across the globe:

• Products:  GM is implementing advanced technologies in its internal combustion engines (such as Active Fuel Management, flex fuel systems capable of running on renewable E85 ethanol made from corn, and clean diesels), in its hybrid vehicles (which include GM's hybrid bus transmission systems, the Saturn Vue Green Line Hybrid and full-size hybrid pickups that are all available today, and full-size SUV and car hybrid systems that will be rolled out over the next few years), and in its hydrogen-powered fuel cell vehicles that emit only water (moving us toward the ultimate goal of removing the automobile from the environmental equation). More on GM's advanced technology initiatives>>
• Processes:  GM continues to set targets and monitor greenhouse gas emissions from its facilities and is taking steps to achieve near-term reductions.  In 2005, GM’s global facilities achieved a 15.5 % reduction in CO2 emissions compared to 2000. More on GM's global facility environmental performance >>
• Strategic Planning:  We are guided by GM’s Environmental Principles.

GM believes the pursuit of a diversified energy portfolio ultimately provides the best opportunity not only to reduce greenhouse gas emissions from the automotive sector, but also to increase the oil-consuming nations’ ability to withstand oil-supply disruptions.  GM also supports scientific research to improve the understanding of the possible long-term effects of human activities on the climate system.

Policy initiatives that encourage advanced technology development are best addressed through voluntary initiatives and market-oriented measures, not government mandates.  For example, the Asia Pacific Partnership for Clean Development and Climate is taking a voluntary, technology-driven approach.

Given that climate change is a global issue both in terms of cause and implication, it is essential that all parties be appropriately engaged.  This will require cooperation between countries, manufacturers and energy providers in research, development and commercialization.  In addition, consumers must embrace these new technologies at a level sufficient to make a difference.

• For more details, see General Motors Report on Energy Security and the Global Climate Issue >>
• GM’s response to the Carbon Disclosure Project Greenhouse Gas Emissions Questionnaire >>
• GM’s voluntary reporting of greenhouse gas emissions under the U.S. Department of Energy Voluntary 1605(b) GHG Registry >>
• GM participates in voluntary energy and environmental management programs throughout the world to reduce GHG emissions.  Click here to see the table of programs. >>
• Environmental and Regulatory Matters section of GM’s Form 10-K to the U.S. Securities and Exchange Commission >>

Road Safety

At the conclusion of the World Business Council for Sustainable Development (WBCSD) Sustainable Mobility project, GM evaluated where it could effectively work with members of the mobility group to address the challenges identified in the report.

The WBCSD Sustainable Mobility report identified road safety as one of the seven goals that will improve the outlook for sustainable mobility:

“Significantly reduce the total number of road vehicle-related deaths and serious injuries from current levels in both the developed and developing worlds.”

Road safety was the obvious choice because of the potential to reduce road vehicle-related deaths and injuries.  GM developed a plan of engagement with the WBCSD Mobility project members and proposed that the group join forces with the Global Road Safety Partnership (GRSP), the leading NGO working in this area.  The Global Road Safety Initiative (GRSI) was formed to further support the mission of the GRSP.

The GRSI is funded by seven of the world's largest automotive and oil companies, which have committed $10 million to road safety.  Ford, Honda, Michelin, Renault, Shell, and Toyota have joined GM in a five-year project commitment.

GRSI will focus on the critical road-safety issues identified in the World Report on Road Traffic Injury Prevention (2004, World Health Organization [WHO] and the World Bank).  These include pedestrian safety, drinking and driving, helmet use, speed management, and seat belt use.  GRSI will build upon the good practice guides being developed by GRSP, WHO, World Bank, and the FIA-Foundation.  It will provide training to road-safety professionals in developing countries, and provide seed money to support pilot projects to improve road safety.

GRSI will help to build the capacity of developing countries to reduce traffic fatalities and help expand GRSP’s capability to deliver road-safety improvements in line with the recommendations of the World Report on Road Traffic Injury Prevention.